to be watching the news out of washington. we're going to be watching the vices to get a gauge of good opportunities to buy high quality dividend-paying stocks. >> okay. all right, brickland, going to have to be quick. what do you expect? >> i think data is on the sideline. all about the fiscal cliff. it's all about how the distrust in washington really makes some significant progress tomorrow. we need some movement from the president. we need some progress. so, we'll have our keen eye on that and more importantly, we'll have our keen eye on discussions surrounding the 2% payroll tax cut which has been quite absent. so, hopefully tomorrow we'll see some sort of progress on that front. >> all right, gentlemen, thank you both for, all three for joining us today and we will watch very carefully. tomorrow could be very, very interesting. that does it for us. thank you for watching. >> indeed. "fast money" starting right now.

live from the nasdaq market site in new york city's times square, i'm melissa lee. here are tonight's top three trades. cliff hanger. will we or won't we fall off the edge? only two trading days left to take your positions. block buster returns. his stock is up nearly 90%. michael burns of lionsgate gives us a sneak peak. and technical difficulty. why the charts are flashing warning signs for the with alls in the new year. let's go the traders. so, we ask you, dr. j, buyer or seller, and you're out? >> i'm out of everything. i am neither long nor short right here and the reason is because i think exactly what happened today, we could be sliding hard, mel, and then all of a sudden, a rumor can come out, we see a rally out of the s&p. we saw a 20-handle rally from the time more murph and i were on half time today. this is not something that's

going to change, the way that i look at next year, which is that we have a lot of issues facing us right now. not the least of which is the debt ceiling just above us. we hit that monday, i think we might actually be there already but geithner says we get until monday until we have to at least talk about it more. that will get pushed off, mel, into february or march, before we actually get the downgrade, but there's a whole bunch of bad heading our way. we could avert it. we'll see whether or not congress has the guts to do something about it. >> no surprise, light volume during this holiday week. so, we are seeing a whippy market, perhaps whippier because people who made their year are calling it quits for 2012. think they've gone to bed for a month already. november, if you had a good year, anthony can talk to this, as well, that you typically pack up and go home. bum here's the issue. when you normally have volatility in a, m market, you see it's a volatile market. even if you know boehner is going to speak, you don't know what he's going to say. so, i'm not like doc, i didn't

take everything out. but all trading positions are gone, i shaved a little b of a, shaved some forte, just because the volatility is too good. i'm optimistic, whatever the deal is, just the certainty will drive the market. >> so, for right now, you are essentially a seller. mike murphy, at this point, nobody knows when it's going to be the catalyst. nobody knows when it's going to be the catalyst to move the markets higher. there's some fear, i think, by individuals, they are going to miss the big push. >> you saw the vices today up over 20 for the first time in a long time. we bought the vices today. but when the market rallied, when it looked like we were going to get a meeting over the weekend, we took that position off. so, what you're looking at right now, let's watch, instead of trying to trade the headlines, because none of us can do that, look at the s&p. it's right at 1419, 1420 range. so, the next move is going to tell you the direction the market is going to take. we came down to 1401 today on the s&p, held it and rallied up

17 handles on that. let the market dictate where it's going to go. the price is truth. it's going to go whichever way, just follow the market. >> to weiss' point, though, he said a lot of institutions may have been asleep for the past month. what we have seen, perhaps, is a rotation to international markets. we've seen international markets hit multiyear highs. hong kong, the dax and germany. zblf and there's no question that a lot of people are rotating into europe, we discussed that yesterday. sky bridge, our research team believes in the european restructuring story, the bank deleveraging story. some of us have to be fully invested, which sky bridge is. but we happen to have lower correlation relative to the overall markets because of what michael is saying, this uncertainty. headline uncertainty right now make s this a short-term coin toss and nobody likes that. over the long pull, i'm very optimistic. is there going to get a deal done?

and i think that will all go well for the markets. and so to be positioned slightly long like steve's suggesting is probably the best position for a short-term -- >> what does that mean at the end of the day? people are wondering what slightly long is and what long correlation -- >> when i say we're low correlated to the market, the beta of the overall market is one, or 1.0. sky bridge is a 0.2. so, if the market goes up 100 points, we'll move 20 points. if market goes down 100 points, we'll move down 20 points. >> what does that portfolio look like? people want to be low correlated. >> it's heavy fixed income, heavy mortgage-backed securities, could be whole loan credit. it could be agency, nonagency paper. it could be some treasuries. it's a whole e leg tick mix of things. and believe it or not, it could be greek bonds, even. those are examples, not necessarily what we have in our specific portfolio. >> let's get back to d.c. the house of representatives set

to reconvene on sunday in another attempt to agree on a fiscal cliff deal. amon j eamon jav everyoers has the sto. >> i'm keeping an eye on my iphone here, i just got an e-mail from a source that says there might be even further news this evening, so, waiting for a status update on that. but we did get some news today and that news, as you say, was that the house of representatives is going to be called back early. they are coming back on sunday at 6:30 p.m. what they're going to do when they get here, we don't have any idea. but we had a fascinating series of dueling press conferences, dueling floor speeches, i should say, by senate republican and democratic leaders. the republican leader, mitch mcconnell, really put the blame on democrats, but he did seem to indicate that there may be further negotiations that are ongoing here, possibly even as we speak. take a listen to mitch mcconnell earlier this afternoon. >> the truth is, we're coming up against a hard deadline here and

as i said, this is a conversation we should have had months ago. and republicans aren't about to write a blank check for anything senate democrats put forward, just because we find ourselves at the edge of the cliff. >> so mcconnell there very much sounding in his remarks today like a man who was expecting a new offer, something from the president of the united states. what we know about the president is that he cut short his hawaii vacation, arriving in d.c. earlier today. and we're not aware of new developments from the president, but mcconnell seemed to telegraph that the president called him yesterday and now expecting that the president would make him some sort of offer at some point in the future. we haven't seen that yet. so, this story continues, melissa. >> so, it sounds, eamon, like the house is going to reconvene and that's sort of a precautionary call at this point because of the time frame but there's not necessary a deal on the table or closer to being

formed at this point. >> that's right. it's not an indication that they have a deal in hand and they're going to vet on something on sunday. it is an indication that they do want all of the bodies back here in d.c. on sunday night. so that if they have to proceed to votes, they can do it and they know where their people are. everybody got 48 hours notation. a lot of the folks are retiring. they're all over the country. snowstorm is wrecking havoc on travel plans. everybody has to get here for the final push on the end game next week. >> okay, keep us posted on the situation. eamon javers joining us from d.c. let's bring in larry mcdonald, the senior policy strategist for investment firm new edge. all right, larry, certainly, a lot of moving parts. a lot's happened in the past 24 hours. what's the big picture here? have we actually moved anywhere from 24 hours ago? >> in conversations that i've had with senators in the last three, four days, if you look back at what happened with the markets ten days ago, the markets ripped when it looked like boehner put on the table an

extension of one year on the debt ceiling. as john has been saying, that's the biggest risk factor to look that. he gave that and he expected, his caucus expected a on the from the president. he didn't get any 2013 or '14 real spending cuts. they got long-term promises, most people in washington won't be in office in ten years. that's the sticking point. it comes down to medicare, spending cuts 2013, 2014. you have to trade what i've been saying of the last month. i've been buying on the moments of fear, receiving the rallies. ill think we're going to get a deal but you have to trade around that. >> let's hone in on that. let's say december 31st passes, we're there january 1st, january 2nd is the first trading day, market participants can react to what is a lack of news. they are working in washington to get a deal together, is that going to be an inflection point of fear in the markets? >> just before, as we saw today, probably going to have one more

of those moments of fear and then we're going to get a 30 to 40-yard punt. and it's going to be a deal without an extension of the debt ceiling. so, that basically puts another risk point on january 30th and that's when we're really going to have to deal with it. the markets are probably going to rip and rally and sell that rally hard unless you see an extension on the debt ceiling. >> right. there are some out there who believe that the risk right now is asimilar met trick because the markets have one up so far this year and the past four trading sessions today, today was the fourth straight day for the dow, the s&p and nasdaq, but the risk is to the down side. would you agree? the people that are you talking to, your clients, agree with that? >> the risk -- there is risk on the down side but it's nowhere near what we had in june, may/june of this year with the european situation. so, without the european systemic risk, all my risk

indicators are much lower. so, this is economic risk. it's not systemic risk. so, therefore, you are looking at a 3% selloff. in june, we lost 10% in 30 days. >> right. >> just factor in, there will be another trillion dollars of fed balance sheet in the markets by this time december 2013. what does that mean for this whole macro piece? >> exactly. >> insert the trillion dollars and tell me where the market is? >> it's going to force money into technology, it's going to force money into stocks. and that's going to happen over the course of the first two quarters. now, the debt ceiling extension, until they deal with that, the benefit of the temper trade, the benefit of all this money, this fed, the quantitative easings those benefits donald materialize until they handle the debt ceiling. >> larry, in terms of just going over the cliff, doesn't it make sense, forget about the ineptitude of allowing it to happen, doesn't it make sense for each party to go over? because then obama gets the tax increase that he wanted, right?

the republicans aren't seen by their constituency of giving into the tax increase and then they start from there, anew, and you can bring it down to the middle class tax cut. so, why isn't that the way it's going to be playing out and the meeting by the house on sunday, just optic. obama coming back, just optics. >> well, like i said a couple of minutes ago, it's the relief rally versus the negative impact of the fiscal cliff. in other words, the recession their forces in the cliff, so, you picture two, like a sea change. the relief rally where it's going to happen, when we get a deal. then you have the recession their forces of the cliff right after that, so, you can see those two forces. i've been looking -- >> stocks can trade up during a recession. not when you're going into it. as you see going out of it. >> but it's still $130 billion of new taxes that are hitting the economy. maybe 150. i'm looking at two-month vices future versus the eight-month and i've been tracking it. track the money flow. so, as the money, if the money

is coming out of the eight-month into the two-month, that's a real risk offside. as the money is coming out of the two-month and into the eight-month, back to the november 16th lows, the money was piling out into the eight-month. it was a good sign that we were on for a risk on trade. >> okay, so, last question. given us the play book. what do you do when we cross december 31st, we have a mini deal in place, a few days after, they continue to work on a deal, they get a bigger deal later on, maybe a few weeks later, give us the play by play. >> i think you buy the dips, from now until you get the 40-yard punt. you get the 40-yard punt, you sell the rally. over the next two, three weeks, you buy into fear. and then when they do extend that debt creeiling, when they get the mini parts of the grand bargain together, that's when you finally see true clarity, you can buy the market. >> all right, larry, good to see you. >> great to be here. >> doc j, in terms of what you

will do, because you are out right now, will you use that as any sort of a guide? >> i'm waiting for the same thing david tepper talked about, the same things larry just cited, as far as that fear. i'm waiting for it to elevate very significantly. we've seen a 35% increase, the vices going from about $15.50 on december 18th to $20.90 today, i believe. that's the cash vices. that's up 35% very quickly. i this i that goes into the mid 20s ahead of -- >> once its mid 20s, you hit the buy? >> that's when i'm a buyer. i'm not really going to be committing cash until then. coming up next, stocks make a dramatic turn around on home for a cliff deal, but key indicators may be signaling a selloff ahead. we've got the details, next. and the fight for survival. what jc bennie and other struggling retailers need to do in 2013. and later, lionsgate up 90% this year. the company behind "hunger games" and "twilight" previews what is next in the new year. back in two. let's give thanks -

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welcome back to "fast money." jcpenney was one of the worst performers in the s&p 500 today. "the wall street journal" saying 2013 is the do or die moment for retrailers like jcpenney along with best buy, sears and radio shack. what is remarkable to me, stephen weiss, is that a lot of analysts are finally getting behind ron johnson and his style, because jcpenney has reverted back to its promotion always, which didn't work in the first place. >> it's mind boggling he still walks around with a halo. why you would ever want to go near this stock, even if they turn it around, it still selling at 20 times fiscal numbers.

going to have to raise equity, versus now given what we've seen, the carnage. you have macy's at less than ten times next year and there's no turn around. so, why buy it? i still say sell it. ten bucks written all over it. go somewhere else. >> are you with weiss? >> i'm not in jcpenney at all right now. i'm long macy's. when you look at jcpenney, i want to short the name. so, you saw when it started to rally back about four months ago, it went from 26 to 31 on a rumor. that's short covering there. so, this is a tough name to be short. because there's so much short -- >> i'm no longer short. i covered in the high teens. >> the one thing we didn't mention on yesterday's show was the long, the pending potential of a long shoreman strike. if we get that, 2002, we lost $1 million a day in activity on the retail side. so, you have to factor that into what's going on in retail for the first quarter -- >> i'm glad you brought that up, anthony, because that's one of

the most underappreciated story facing the nation. when you have 100 business leaders urging the president to step in, this is a big story. >> big story. and it really has a big impact on the retailer. so, we can talk all day long about the fundamentals for the individual stocks but a macor situation like that unresolved is going to hammer everybody. >> let's move on. the dow falling today, below 13,000. and stocks are on track for their first q-4 loss since 2008. will this continue into 2013? according to our next guest, key indicators show correction is more likely than a continuation of the rally from earlier this year. for more, let's bring in barry sign, director of research at drexler hamilton. great to see you. >> hey, guys. >> so, what's flashing on your charts? >> well, a number of factors, right? so, obviously, the topic is the fiscal cliff. even if we get a resolution, if you look at larry mcdonald's bullet points a few minutes ago, those are pretty bearish in my opinion for equities.

that ties in nicely to a key thesis we look at in technical analysis, which is the presidential cycle theory, which says that stocks move in four year cycles. the first and second years of a president's term is usually negative for stocks. so, we're setting ourselves up 2013, going in for what we think is going to be a down year for stocks. most of the strategists out there that i look at are pretty bullish. so, you've got most of the street very bullish. we're taking a contrarian view. we think you're going to get a bit of correction. you had a strong rally. we think you're going to correction some of that. >> what's a bit of a correction and which sectors will lead us lower? >> we talk eed about defense. we talked about retail. but if we look at what we have to kind of give back, if we look at the s&p 500, that hit a resistance level at 1460. we had a rally, about 34% rally from october 11 to october 2012. we look at the nasdaq, during

that same time period, that went up about 38% and, again, we've had a resistance level at about $31.50 there. looking at smaller cap stocks, the russell 2000. again, a 44% rally from october '11 to october '12. and we have resistance there, about 850. if we take those rally levels and we assume about a 38.2%, what we call a retracement, in technical analysis, you get to levels such as 1330 for the s&p 500 as correction territory. >> okay, so, you can cherry pick larry's comments, but the other comment was that we've got massive liquidity coming in. it's not just don't fight the felt. it's don't fight the bank of tokyo, don't fight the chinese refer make, it's going to continue to put money in, don't fight the ecb and don't fight the fed. so, with that title throw of liquidity coming in, it's not about where the stocks have come from, because they were at very,

very dre pressed levels and still are. how do you counter that argument. and if you overlay the flow of funds coming into the economies around the world, what would you technical chart look then? >> well, we've had a flood coming in, and liquidity jauchbtimes is pushing on a string. so, with negative consumer sentiment, we're going into what historically is a down year, because the stimulus is largely over from obama's first term. so, we don't think the overall economy is going to look that great. if you look abroad, look at the shanghai composite, that's a key indicator of consumer sentiment in china. moving straight down on the shangh shanghai a-shares. we don't see a catalyst for an uptick. if you overlay that, you're talking about liquidity, with the higher taxes, obama's last offer that was on the table was $1.4 trillion in higher taxes over ten years, and $800 billion in lower spending. that's taking a lot of liquidity out of the economy. >> okay, barry, last question

here. fill in the blanks for me. if we hold x, then this correction will not happen. >> if we hold, i mean, key support level certain little on the s&p 500. look for 1400, would be a key support level to hold there. we'd want to bounce back up. but what you really would be looking for, i showed on the charts, key resistance levels. what you really want to see, we have not been able to break above those resistance levels. you need to break above those resistance levels very convincingly if you're going to convince me there's going to be a rally in 2013. >> barry, thank you, joining us tonight from miami. >> thank you. >> you look what barry has to say? >> i think you should get a correction here. >> do you like the notion of the presidential cycles? >> i look more, you know, so, you're dealing right now, there are so many headlines out there and you are trying to decipher what's important, if you are focusing on the cliff or the long shoremen. but if you focus on the

important key levels in the markets, you know, like where we're sitting right now, 1418, 1419, i think those are key levels to watch and that's how you're going to get your direction on which way to be. >> let's hit pops and drops. we kick it off here with a pop for expedia, up 4%. doc? >> yeah, pops all the way up, near a52-week high, again. because everybody's got to head back to washington, d.c. at least that's the only news event that i saw on the horizon. but it is that people are shopping around, trying to be more efficient in how they spend their money. not just our politicians, who, they don't care about how they spend it. >> it had been a drop for abercrombie which was done as much as, what, 1.3% at its lows. >> consumer discretionary led the market down and then it rallied, so, you actually have a pop now for abercrombie who finished the day up 1.6%. that's more than 3% turn around. >> delta airlines, a drop, 1% the move. mike? >> delta airlines joining the

other major carriers, can receiving a number of flights due to storms. here's the thing, though. the airlines are probably as well positioned as they've been in a long time. if you are willing to tread there, i'd buy this one. >> drop for jpmorgan, down 1%. anthony? >> you know, i love this name long-term. it's got a great balance sheet relative to the other financials and with where housing is right now, i think jpmorgan is going to have a good year and don't fight the fed on this one. >> drop for u.s. steel. x was down 2%. mike murphy? >> down 2%. what i consider a healthy pull back. this whole sector's had a nice rally on positive china data. so, i think the stock is just pulling back a little bit more than 2% today, but still in a bullish formation. >> and we have a drop here for presents. a drop for presents? tired of tube socks? sick of scarves? here's a problem that many people face. what do you do with the unwanted holiday gifts? more than 350 users have posted items on ebay with the heading unwanted christmas presents and with many rejected presents

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let's play one of our favorite games here on "fast money." the good, the band the ugly, starring, tonight, mike murphy. first, the good. over the past couple of months, mike has been hitting the gas on ford. take a listen. >> think you buy ford on weakness. looking for ford to get above $11.50. i this i you stay long this name. >> shares of ford have been going higher. up 13%. what do you do now? >> we bought more ford today. ford is a great way to play the recovery. and a great way to play the recovery in housing. you can tie f-150 sales, the most popular vehicle told world

wide directly to housing starts. ford continues to move forward. >> f-150, a pickup truck. >> yeah. >> onto the bad here. last month, mike was looking for a strong showing from macy's. here's what he said. >> i look at a target and a macy's, companies putting up great numbers in the past. i think you buy them on a dip and look for them to take out new highs. >> macy's dropped 8% since that call and target is down, as well. so, mike, do you still, well, you just said before you are sticking with macy's. >> i think i have the same tie and shirt combo. >> stripe on stripe. bold. >> buy more shirts at macy's. >> sunglass sales. >> thanks. >> keep going. >> macy's is a great setup. if you're going to be in the retailers, as they all got hit here recently, but it's an opportunity. if you were willing to hold the stock, as i was, at $41, $42, seeing the stock at $37 is an opportunity.

let's move on. call it the land of the setting currency. the japanese yen's dive continued today. is there still time to get into the world's easiest trade? let's hit money and money amelia bordeaux. good to see you. >> good to see you. >> sees like everybody and their brother is going short japanese yen. what is your take? >> the market is quite short, as you said. yen, so, there is a risk to being long dollar yen at this phase. but i don't want to fight this momentum. it's so strong. a couple of days ago, the bank of japan released november policy meeting minutes which they came around, said, they need to ease more to impact the yen. overnight, the new prime minister, abe, said he was going to put a plan together, including currency intervention to specifically weaken the yen. i'm waiting for a bit of a pull back. we're trading at 86 the figure right now in dollar yen. i still want to be long dollar yen. i want to enter at $85.60 area, $85.50 area, a little bit of a

pull back. i target $87.50 on the upside and input a stop down at $84.70 area, which has resistance there. >> what's your feeling about hitting $90 by the time the boj meeting in a couple of weeks? >> i would be a very, very fast move. i mean, we have to consider the other side of the dollar yen trade, which is the dollar, so, it really depends on what happens, you know, with the fiscal cliff, as well. whether, if we don't fall off the fiscal cliff, that are propel more dollar yen upside and if we do, i think yen will strengthen at least against the dollars because both are considered safe haven currencies. i think the target of 90 on the yen is probably more realistic on a four to five-month basis. >> okay, amelia, good to see you. >> good to see you. >> aimee amelia bourdeau. coming up, we head to the twitter-verse. plus, the luxury retailer which may break away from the pack and deliver some big proteat this

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hollywood stocks heating up in 2012. in fact, check out shares of imax, disney and time warner, seeing big jumps this year. lionsgate shares also powering higher, up 89%. the entertainment shop is behind "twilight" and "hunger games." so, what is in the pipeline to keep fueling this power house? joining us is michael burns. great to see you. >> melissa, i wish i could see you, but nice to be here. >> your stock has obviously had a massive run. before we delve into what we can expect for 2013, i want to talk about the stock in 2012. up 89% so far this year and i want to bring to your attention, i know you know this note, goldman sachs' initiation of coverage. some of the points, i think really resonate. these are the concerns that investors might have with a stock with such a huge runup

this year. yes, the summit acquisition was great. "hunger games" will generate cash flow. the stock is up. it's trading at a 10% premium. and 30% premium to other con glom rates. what do you say to investors? >> well, i saw that report, it was a neutral but it also had an $18 price target, i believe. so, what do i say? i mean, that report is the same thing investors on the street ask all the time, which is, what you have done for us lately? and, the short answer is, we think we're building another franchise. the summit acquisition, between "twilight" and "hunger games," it transformed the company. it is completely different than it was 18 months ago. so, what we're continuing to do is build up this gigantic library, margins are improving. we've hit critical mass, whether it's our new pick, pack and ship deal at fox or a settlement rate with theaters.

when you've hit critical mass, and you're over a couple billion dollars of revenue and you look at one movie franchise that's done $3 billion in world wide box office, you're talking about, you're in a completely different space that you're going to improve margins with digital delivery and you're going to reinvent franchises and you're going to start new ones and, you know, we've got 23 television shows on the air on 16 different networks. we're working hard. >> and you're actually putting your money where your mouth is. you recently signed a new five-year contract and you took a lot of that pay in stock and the options start at what, 16? >> yeah, i think my starting price was $16.09. and it was a lot of my compensation because i believe in the upside. i think we are going to massively delever, like we told the street. a franchise like "hunger games" and the success of "breaking dawn" gives us the act to do that. we're going to replace expensive date, we can call our high yield bonds in november, 11 months

from now and pay for that with our libo-based facility. i don't think libor is going to go up dramatically any time soon, so, when you're talking about replacing 10% money with sub-3% money and you're talking about $400 million, it's a lot of dough. >> yeah, it is. does add up. let's talk about your pipeline for 2013 what are you most excited on the movie side, the one movie, because we have limited time and then on the tv side, the one series? >> well, "catching fire" obviously, that's coming out in november and i'd say "diver gge" we're going to have great casting announcements on that one. so, those two franchises, potential franchise and existing franchise i'm most excited about. >> tv side? >> tv side, yeah, in january, we have "anger management" coming back on the air wand we have "nashville" coming back on the air, and your favorite, "mad men," at well. >> well, one actor in particular, really.

>> i'm aware of that. >> where's the doll this year, michael? what happened, where's the doll? >> i actually know where john is at the moment but i'm not going to tell melissa. >> all right. last question here. >> good judgment. >> last question, and that is, the issue of the dividend. i asked you this last time and you mentioned again the money you're saving because you are retiring debt at a lower cost. so, will shareholders start to see that? >> what shareholders will see is us giving our board of directors paying close attention to where we think they'll get the most bang for their buck, whether that's shrinking share count, paying dividends, reducing debt. it's wherever we think we're going to get the best return for our investors. >> okay, michael, great to e so you. have a happy new year. >> thanks for having me. >> happy new year to all you guys. >> let's trade this, anthony. you are familiar with michael and the stock. >> you know, i love him, he's a great presenter, we defended him. the most significant thing he said just now was $16.09, i know

steve caught it, the rest of the traders here caught it. when a manager knows what the strike price is on his options, it's very motivating as an investor, so, i'm, i love this guy and i love this name. >> a good part about the story is that they're building up a great residual income stream where there's money coming in every year, from the residuals from "mad men" and the franchises. that's a great thing for him. >> i tried to get you the doll. >> i have a jon hamm doll. >> an extra one. a spare. >> an extra one. >> one big block buster that's supposed that misses, like what happened to disney, that could really hit the stock, that would be my concern. coming up next, consumer confidence crashing. not for this luxury retailer. we'll reveal which one next. and a look at what is en,rating buzz on the west coast. jane wells is here with it. jane? >> hey, melissa. you're going to be surprised what major west coast industry is doing well going into the fiscal cliff. and randi zuckerberg gets

lionized. that is not a good thing. we'll have that after the break. , you won't just find us online, you'll also find us in person, with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start. our support teams are nearby, ready to help. it's no wonder so many investors are saying... [ all ] i'm with scottrade.

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you can stay in and share something... or you can get out there and actually share something. ♪ the lexus december to remember sales event is on. this is the pursuit of perfection. luxury retailers have had a tough few months but options traders are looking for big upside on one fashion giant in

particular. mike, give us the low down. >> yeah, it was interesting. nordstrom has traded off 10% since its highs in november, but options traders were making bullish belts today. they were buying the january calls. over 5,000 traded, more than two-times the average daily volume, on bullish bets that the stock would be above $52.40 by jan expiration, which is about three weeks from now. >> all right, thank you, mike. and you can get more options action, of course, tomorrow, 5:00 eastern here on cnbc and check out the new facebook page for the show, facebook.com/optionsaction. time to check in with sima, she's back at headquarters today to hear some of your tweets. and this resolves around retail. >> it is. the twitter audience watching the come back today. the group had been under pressure following bad holiday numbers. so, which names do you like? let's go to the tweets. scott is watching deckers outdoor, tweeting, the reversal in the stock is confirmed,

breaking once again above its 50-day average. mike murphy, are you an uggs lover? >> you hit the nail on the held. my three daughters have five pairs each. one interesting fact is that 65% of the u.s. has some sort of snowfall right now. so, i think that's really helping their sales, coupled with the fact that half of the float is short. that's the reason for the rally today. >> so, whether haeather helping. market action tweet iing ralph lauren. timeless and classic, profitable, around outlets also popping up. anthony, the stock up 7%. your thoughts? just think there is one of the fabulous luxury international brands. they have figured out how to be something to everybody in all markets and i like the stock for the long-term and the management team has been phenomenal. >> look the stock for the long-term. last tweet. michael kors, that's what the last tweeter has to say. his designs keep regenerating. coach had to rehash legacy,

girls want kors. this has been a big debate, michael kors versus coach. dr. najarian, where do you put your money? >> i like kors better than coach at this level. so, i would take kors, and i do see some unusual activity in there. >> really? what sort of strikes? >> the 50 strike. i still think it has a date with 50, that's coach. as far as kors, there's a lot of speculation in this here and i think people could be rewarded for it. i certainly rather be in the options, melissa, than in the stock itself at 50 bucks. >> okay, sima, thank you. when we come right back, how to play the markets newest winners and losers. a round of hold 'em or fold 'em is coming up. and we take a look at gauping stocks and whether they will hit the jackpot in 2013. back right after this. [ indistinct shouting ]

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from mobile devices to medical marijuana, we've got you covered in the west coast wrap.

jane is with us from the best coast. ya jane? >> melissa, we start with amazon, who thkilled it. 26 1/2 million orders. over 300 items a second. almost double the peak day two years ago. we don't know how it compares to last year. but the troubling development here? amazon reports this christmas, customers bought enough garden knows to fill every seat in madison square garden. melissa? >> wow. that's a whole heck of a lot of gnomes. steve weiss. >> i've never seen that many. but we've got mike murphy, who doesn't like the stock at all. he's short that thing. >> short -- >> i don't have the guts to short it. i'd like to be. i don't have the guts to. >> i think at some poinl, the valuation in amazon is going to have to come in to some sort of normal level. it's trading at 500 times current level, so, i think it will is a pull back and we're targeting the 218 level as a key level. >> all right, jane? >> all right. here's another surprise.

defense industry is a huge employer. i know people who have been getting their layoff notices ahead of the fiscal cliff. market isn't playing defense in selling the stocks. no. pretty close though their 52-week highs and have outperformed the s&p. in fact, lockheed and raytheon ended up, melissa. >> doc j, what do you see? >> ah, i like general dynamics the most of the group. it's only about 4% year to date. some of these others are up double digits. all of general dynamics move lately, melissa, has come since the election. so, this would be the one that i would play of that group. >> okay, jane? >> thanks, jane. >> finally a smackdown between writer dan lions and mark zuckerberg that randi zuckerberg said it wasn't cool that someone retweeted her photo. lion s ripped into her. how awful this might have been, how invasive. how terrible that someone might take something that belongs to

you and use it in ways that you had not only anticipated and for which you had not given explicit permission! ouch. >> little pot calling the kettle black there. good for him. >> to me, he's like taylor swift, dan lions. i would never want to break up with him because he would probably annihilate you. >> how could this not be your favorite story of the day? >> it's a great story. juicy on all levels. >> what does it mean for the stock? >> yeah. >> it means nothing. >> maybe it doesn't mean anything for the stock. >> oh, boo-hoo. >> ultra regulate facebook at some point with the privacy stuff. maybe. >> maybe zucker berks goes a it, like the hatfields and mccoys. >> maybe we'll have more human decency. >> all right, jane, thank you. >> you got it. >> jane wells. let's move to the next trade. the markets may be hanging off the fiscal cliff, causing investors to take cover until caller waters prepail. we want to know which stock you are betting on for high risk

high reward in 2013. let's be clear, this is money that you're willing to lose. this is a lottery ticket play. this is, if you have to take a flyer on any stock in 2013, what would it be and we asked our traders, so, doc jay? >> scientific games. sgms. if mobile gaming, if you start walking around with one of these and you can play all manner of gaming, video poker, slot machine, all that sort of thing, these guys make that kind of technology work. that's why i like sgms. it was north of $40 five years ago. it's cheaper than going to see "les mis" though anthony's daughter is in it. >> correct. i've seen it three times. >> gets better each time, right? >> better each time and i caught the seconds she's in it. go amelia. >> steve weiss, similar rationale. you picked a stock that is in the -- >> toilet. >> yes. thank you for saying that. >> nihd. and here's the story with it.

it's cheap. only four times enterprise value. but the problem is, it's seven bucks and the same valuation when it was 20 bucks. so, the valuation keeps going down. here is why it is a good lottery ticket. because they are in the emerging markets throughout latin america. it's a wireless company and i think there's the potential they get acquired by maybe it's a deutsch telecom, who knows. >> anthony, your pick? >> lottery ticket, and this is going against what dennis said yesterday so i don't like going against dennis because he's very smart, but i would get long the yen against all of these other guys taking the other side of the trade. number one, you could have a stronger than expected economy. number two, i think ben bernanke's foot is a lot heavier in the acceleration race to the bottom as it relates to currencies. and number three, some of us are old enough to remember the por

porche/wo porche/volumings wallen deal. >> vtg. this was an $8 stock in 2008 and i think it has the ability to go back there, based on the value of its land. >> okay. got your first move tomorrow when we come back. stay tuned. we're all having such a great year in the gulf, we've decided to put aside our rivalry. 'cause all our states are great. and now is when the gulf gets even better. the beaches and waters couldn't be more beautiful. take a boat ride or just lay in the sun. enjoy the wildlife and natural beauty. and don't forget our amazing seafood. so come to the gulf, you'll have a great time. especially in alabama. you mean mississippi. that's florida.

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